Under the UCC's ________ requirement,a person cannot qualify as an HDC if he or she has taken an instrument after detecting that it has been dishonored.
A) no evidence of forgery, alteration, or irregularity
B) taking in good faith
C) taking without notice of defect
D) taking for value

Question

Quizplus · Accepted Answer

The requirement that a person must take an instrument without notice of any defect, such as dishonor, to qualify as a holder in due course is known as the "notice of defect" requirement. Therefore, option C is the correct answer. Option A refers to the "genuine signature" requirement, Option B refers to the "good faith" requirement, and Option D refers to the "value" requirement.

Under the UCC's ________ Requirement,a Person Cannot Qualify as an HDC